DLC spends $100 million on four open-air centers

One of the nation’s largest owners of open-air shopping centers just got larger.

In a simultaneous deal, using funds managed by DRA Advisors, Elmsford, N.Y.-based DLC Management Corp. has acquired four shopping centers in four states for a total of more than $100 million, according to a press release issued by DLC.

Combined, the four centers comprise 765,000 square feet of gross leaseable area.

“We saw a tremendous opportunity in this deal to expand our national presence through the acquisition of great assets, and we’ve already mitigated much of the investment’s operational risk by pre-leasing many of the box vacancies and numerous inline spaces,” said Adam Ifshin, founder and CEO of DLC.

The largest property in the deal is the 380,479-sq.-ft. Cornerstar shopping center at the junction of East Arapahoe Road and Rte. 83 in Aurora, Colo. outside of Denver near Cherry Creek State Park. Tenants include Target, Marshalls, HomeGoods, 24 Hour Fitness, Nike, and Ulta, and DLC has executed a lease which it intends to use to add a specialty grocery store to the tenant mix. 

In Columbus, DLC now takes control of Powell Center, a 201,970-sq.-ft. property with a tenant list headed by Marshall’s, HomeGoods and Staples. The center—nearby The Ohio State University Campus—is just 53% occupied and will undergo an immediate renovation. 

The other two centers involved in the transaction are Sewell, N.J.’s Cross Keys Place, a 147,694-sq.-ft. center anchored by Michaels, Old Navy, and Petco, and the 34,674-sq.-ft. Shops at Prescott Gateway outside of Phoenix, whose hallmark tenant is Trader Joe’s.

“Even in today’s challenging lending environment, DLC secured accretive loans on each of the four properties,” said Jonathan Wigser, executive vice president and chief investment officer at DLC.

The deal was closed with the help of DRA, a New York-based advisory specializing in real estate investment management services. Since its founding in 1986, DRA has acquired more than 250 million sq. ft. of real estate worth nearly $40 billion. 

DLC, meanwhile, intends to keep on buying.

“DLC was able to source and close this portfolio transaction on an off-market basis given its relationship and track record with the seller and lenders,” said Aaron Wu, its VP of acquisitions. “We continue to seek other acquisition opportunities in the current environment.” 

DLC owns and operates more than 80 centers nationwide.